Regulators often face the challenge of designing and implementing rules that both, respond to the policy objectives and that can be clearly referred to the day-to-day operations and practices in the marketplace. In many cases, the actual codes end up being a cumbersome collection of conditions...

This article studies dynamics in a model where agents forecast a one dimensional state variable via ordinary least squares regressions on the lagged values of the state variable. We study the stability properties of alternative transformations of the state variable that the agent can...

In a very influential paper, Shachar and Nalebuff (1999) develop and estimate structurally a pivotal-leader model of political participation, focusing on the first-order condition of the problem solved by the leaders of two political parties. This note (1) shows that the problem of the party...

There has been increasing concern that the difficulty of obtaining firm operation licences in developing countries may decrease firm creation and increase informality. We estimate the effect on new firm creation/registration of a program that speeds up firm registration procedures and makes them...

In the mid 1980s, Mexico undertook major trade reform, privatization and deregulation. This coincided with a rapid expansion in wages and employment that led to a rise in wage dispersion. This paper examines the role of industry and occupation-specific effects in explaining the growing...

We postulate that the growing participation of institutional investors in capital markets along with their particular objective function might help to explain the home equity bias puzzle. We model an institutional investor as a risk averse investor that has access to international financial...

We show that a perfect correlated equilibrium distribution of an N-person game, as defined by Dhillon and Mertens (1996) can be achieved using a finite number of copies of the strategy space as the message space.

We consider a small open economy that produces and consumes two goods, one tradable and one not. Domestic residents combine their own income with credit obtained either abroad or at home to invest in capital production, which requires the tradable good. Capital investments in the tradable sector...

I provide new results concerning dynamics for the Kiyotaki-Wright model (1989). I permit mixed strategies, but only those that restrict agents to play a unique strategy for each opportunity set. My results demonstrate the importance of examining stability in such models, because they show that...

For the problem of adjudicating conflicting claims, we study lower bounds on the awards of each agent. We propose extending a lower bound by performing the following operation: (i) for each problem, assign the lower bound and revise the problem accordingly; (ii) assign the bound of the revised...